This document discusses mobile payments (m-payments) in the UK and the need for research on factors affecting their adoption. It notes that m-payments combine mobile devices and services with payment systems, originally for mobile commerce but now with potential for ubiquitous payments. However, m-payments have seen limited success in Europe and North America compared to Asia and developing countries. The document argues that research on m-payment adoption in the UK is important given different payment cultures and the need to understand barriers to their growth in supporting mobile commerce. It also notes that most previous research on adoption has focused on China rather than European contexts like the UK.

1. Will mobile payments prevail in the UK?
Emma L Slade, Prof Michael D Williams & Dr Yogesh K Dwivedi
School of Business, Swansea University, Swansea
1. Introduction
2. M-payment systems in the UK
Mobile payments (m-payments) combine payment systems with mobile
devices and services to enable users to initiate, authorize and complete a
financial transaction over a mobile network or wireless communication
technology.
M-payments originally arose as a payment solution for mobile
commerce. However, as a result of continuous innovation, m-payments
now offer the potential to be the first ubiquitous payment solution, thus
delivering a distinctive value to both consumers and merchants. Despite
their advantages, m-payments have experienced limited success in
Europe and North America compared with Asian and developing
countries to date.
Combining payment systems with mobile devices finally provides
consumers with a ubiquitous payment solution. However, m-payments’
success depends on their acceptance by a number of stakeholders to
reach a critical mass of adopters. Given the lack of quantitative research
in the UK, examining the factors affecting adoption of m-payments in
this context will generate knowledge that is useful both theoretically and
practically.
m-payments
Proximity
m-payments
Plug-in card
terminals e.g.
iZettle;
Intuit;
PayPal Here
Mobile
wallets/payment
applications using
NFC e.g.
Google Wallet;
Orange’s QuickTap
Remote
m-payments
SMS/PRSMS e.g.
text to donate
Mobile
wallets/payment
applications using
wireless networks
and/or phone numbers
e.g.
Barclays’ Pingit;
O2 Wallet
Currently, no m-payment adoption research has been conducted in the
UK context. Research into the adoption of m-payments in the UK is
imperative because:
1. The survival and growth of mobile commerce is dependent on
successful adoption of m-payments but there is a general reluctance
to adopt new payment systems as a result of entrenched behaviour;
2. M-payments pose a threat to existing payment systems such as
credit and debit cards;
3. As a result of different payment cultures, UK adoption of m-
payments may be affected by different factors.
4. Importance of m-payment
adoption research in the UK
The most researched context to date is China, where more than a third
of the quantitative m-payment adoption research has been undertaken.
35%
15%
10%
5%
5%
10%
5%
5%
10%
Proportion of quantitative m-payment adoption research by country
China
Germany
Finland
India
Ireland
Korea
Malaysia
Singapore
US
There are two overarching types of mobile payment: remote and
proximity systems. Within these two types there are now a number of
different offerings in the UK that use different supporting technologies in
combination with a mobile device.
3. M-payment adoption research
5. Conclusion
Only 20 quantitative studies have been conducted to examine the
adoption of m-payments. Although the earliest quantitative m-payment
adoption research dates to 2004, 70 per cent of the studies have been
published since 2010, therefore m-payment adoption research is still in
its infancy.
0
1
2
3
4
5
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (to
date)
No. of publications
Year
Distribution of quantitative m-payment adoption research by year